The risks of committing avoidable tax failures, especially towards the tax filing deadline, are often high, some with negative consequences that may even lead to a tax audit or unnecessary delays in the processing of returns. Here are seven such errors that can be avoided simply by double-checking completed returns before submitting them to the IRS:
1. Incorrect Social Security Numbers: Make sure all social security numbers, whether for yourself, children, spouse, or dependents, are correct. The IRS has rated this as the most commonly made return error and therefore you need to verify it. This should be done whether you are filing on paper or online.
2. Name errors: Be sure to use your own name, especially if you are married filing separately instead of your spouse’s. Make sure the name on the statement matches the name on your Social Security card. Contact the Social Security Administration to obtain a new card if there are any changes in the names.
3. Incorrect / Multiple Fill States: You can only file under one marital status at a time. Although the online tax preparation software does not accept multiple selections of filing states, it is common for paper filers to check more than one state at a time. Make sure this does not happen.
4. Signature of all signature areas: Your tax return is only valid if it is signed accordingly by all relevant parties. If you are filing a joint return, make sure your spouse signs it too, as failure to do so can lead to delays or even total rejection of the return.
5. Mathematical errors: Mathematical failures are common, especially when calculating the amount of tax owed manually. Avoid this by using only the most current version of the tax tables, check the math and make any necessary corrections.
6. Claiming credits and deductions: Regulations for IRS credits and deductions change constantly each year, and you should check to make sure you qualify for some, like the Earned Income Credit, which is calculated based on gross income before claiming. The same applies to deductions, some of which are age specific. To avoid delays in processing your return, only claim the credits and deductions for which you are eligible.
7. Account and routing numbers: Most taxpayers claiming refunds prefer Direct Deposits from the Internal Revenue Service (IRS), which can only be made if you provide accurate routing and bank account numbers. It is very easy to correct this error; just review the details before applying.
Lastly, feel free to request a tax return extension if you cannot file your return on time. This will ensure that you avoid not only common tax mistakes, but IRS interest and penalties as well.